Senior Complex Federal Audit

posted Jan 12, 2010, 12:06 AM by Tim Swezey   [ updated Jan 12, 2010, 12:17 AM ]
Federal Audit on Senior Complex Loan
 Full Audit for AHFC Loan to Build Senior Complex
 
 Over Due Notice from State of Alaska:
 
If action is required it should be in February
 
 This is what is going on to the best of my understanding
 
TLS 
Summary of Events
 
Note: Meadow Lakes Seniors, Inc has completed one required audit on the Senior Complex Loan.
 
They have clean books for the final audit and are on track for the final audit based on the old rules.
 
The MLCC is required to do a full audit based on the new Federal rules. Meadow Lakes Senoirs, Inc. is now required to complete their audit based on the new rules.
  • March 2008: Rule change on required audits
  • April 2008: AHFC Loan to Build Senior Complex
    • Loan money does not pass through MLCCaccounts, everything is handled by Meadow Lakes Seniors, Inc.
    • AHFC set aside money based on old audit rules
  • June 2009: Senior Complex Completed
  • September 2009: Audit due on all nonprofit enities involved with loan as required by new rules
  • November 2009: Loan officialy closed
    • Old rules required audit due by end of Meadow Lakes Seniors, Inc. fiscal year
The State of Alaska is adminstrating the audit for the Federal Goverment.
 
The Meadow Community Council and the newly formed Meadow Lakes Seniors, Inc. are the two nonprofit enities on the loan from AHFC to build the Senior Complex.
 
Control of the loan was passed to Meadow Lakes Seniors, Inc.
 
AHFC sets aside money to complete all business activities including audits. An audit has already been done for Meadow Lakes Seniors, Inc. and their books are in order.
 
Normaly another audit is done when the loan is closed out and money has been set aside by Meadow Lakes Seniors, Inc. to complete that audit.
 
But the Federal Goverment changed the rules for 2008 requiring a full yearly audit of every nonprofit involved with the loan. AHFC didn't set aside money for yearly audits because it wasn't required in the past.
 
Even though Meadow Lakes Community Council isn't involved with the administration of the loan, we're required to do a full audit as well. TheMLCC has the money to pay for a full audit but it's financialy punitive for us to do so.
 
Anderson Enterprises is working to reduce or eleminate the cost of the audit to the MLCC and we should know more by the February meeting. Two other Alaskan nonprofits have been placed in this situation and nation wide it must be a real mess.
 
Meadow Lakes Seniors, Inc. can now stand on their own and the MLCCwon't be on the paper work for future projects. But when we move forward to build the Community Center it's important to be aware of this issue.
  
In order to prepare we're pulling all records into our new office. I've installed Quickbooks on the desktop. Marion and Sherri are going though the statements for the last two years. Sherri has had experience dealing with audits and CPA's. She's going to setup the structure of Quickbooks similar to the Senior Complex.
 
Toni who's a past Treasurer is also helping.
 
They're going to enter the data and organize the records. By doing so it should take the CPA a day to do our books. Everything should be ready for the CPA in two weeks.
 
Ths State issues three overdue notices before they slap you on the wrist and place you on a list. The list makes it harder to get Federal money.
 
We'll have our audit done about the time the second notice comes out.
 
The audits should be done and our books blessed by the CPA before March.
 
With a clean set of books we can start looking for a new Treasurer or coast until the May elections.
 
Now that we have a place to work and store records it'll be a requirement that all business be done at the MLCC office. We only do a few transactions per month so it shouldn't take much time to stay current.
 
My Opinion (which may need adjustments):
 
The Feds and the State of Alaska can see from the first Meadow Lakes Seniors, Inc. audit that no monies passed though MLCC accounts.
 
This does however give the State of Alaska a mechanism to look inside our books for free. Which isn't a bad thing.
 
We were unable to obtain money to build the Community Center. By getting the AHFC loan to build the Senior Complex we were able to get a gas line into the area.
 
The gas line makes the Community Center a viable project.
 
The cost of an audit can be viewed as the cost of obtaining the gas line.
 
Just keep in mind that the Anderson's aren't done running the ball down the field.
 
TLS

MLCC Action: See text above.
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Tim Swezey,
Jan 12, 2010, 12:10 AM
Ċ
Tim Swezey,
Jan 12, 2010, 12:10 AM
Ċ
Tim Swezey,
Jan 12, 2010, 12:10 AM
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